Inheritance advice

BMTH

Coming into a bit of money over the next couple of weeks. I'm having to rely on a CC until I get it which will add up to roughly £1K when I receive this money. I've never owned a CC before and it is my only one with a limit of £2K. Is it wise to pay it off in one sum and keep it out of reach incase of emergencies or pay it off in small chunks?

Also, what is the best way to invest £6K? I've currently just come back from travelling and without money to my name, but luckily living with parents and currently waiting to hear back for 3 jobs. 26 male.

kidmugsy

BMTH wrote: »

Coming into a bit of money over the next couple of weeks. I'm having to rely on a CC until I get it which will add up to roughly £1K when I receive this money. I've never owned a CC before and it is my only one with a limit of £2K. Is it wise to pay it off in one sum and keep it out of reach incase of emergencies or pay it off in small chunks?

Is it a 0% card, or a conventional one with an APR near 20%? If the latter, clear the debt asap. Thereafter just clear the whole of each month's debt; it's easy to do with a direct debit.

BMTH wrote: »

Also, what is the best way to invest £6K? I've currently just come back from travelling and without money to my name, but luckily living with parents and currently waiting to hear back for 3 jobs. 26 male.

It would probably be best to keep much of it as your emergency cash reserve. So, for example, open a Nationwide FlexDirect current account, obey the T&Cs, and get 5% AER on up to £2,500 for the first year. Perhaps open the TSB current account that pays 5% on up to £1500. Would the total of £4k do you as an emergency cash reserve?

Do you hope to buy your first property in the next few years? If so open a Cash LISA and put your further money in there. They are available from three BSs - the Skipton, the Newcastle, and the Nottingham.

BMTH

kidmugsy wrote: »

Is it a 0% card, or a conventional one with an APR near 20%? If the latter, clear the debt asap. Thereafter just clear the whole of each month's debt; it's easy to do with a direct debit.



It would probably be best to keep much of it as your emergency cash reserve. So, for example, open a Nationwide FlexDirect current account, obey the T&Cs, and get 5% AER on up to £2,500 for the first year. Perhaps open the TSB current account that pays 5% on up to £1500. Would the total of £4k do you as an emergency cash reserve?

Do you hope to buy your first property in the next few years? If so open a Cash LISA and put your further money in there. They are available from three BSs - the Skipton, the Newcastle, and the Nottingham.

I'm not great with my CC's offers but it's no charge on purchases although on my statement there's been a few times I have been charged! I do 0% balance transfer fee which I don't actually need. Is it not worth just paying it off in one then?

The savings would not be touched as I've budgeted another couple of K as 'emergency'. (I understand circumstances could change). Could it be worth looking at help to buy isa's? If not, I'll do some research into your suggestions. Thanks again.